Lenovo sees Q3 profits soar, sells mobile phone business

Lenovo sees profits soar, sells off mobile-phone unit

Lenovo Group said its net income almost tripled during its third fiscal quarter, thanks to strong demand for its computers and a weak US dollar.

Lenovo's sales during the quarter came to $US4.6 billion, up 15 per cent over the same quarter a year earlier, the company said in a filing with the Hong Kong stock exchange on Thursday. The company reported net income of $172 million for the quarter, compared to $58 million a year earlier.

The results announcement came late. Lenovo was originally scheduled to report its financial results on Wednesday, but missed a filing deadline with the Hong Kong stock exchange that forced the company to delay releasing its results by one day, it said in a statement.

Third-quarter PC shipments rose 22 per cent compared to the previous year, which Lenovo said outpaced the industry average of 16 per cent. That growth likely grew Lenovo's share of the global PC market from 7.1 per cent to 7.5 per cent, the company said.

China continued to be Lenovo's strongest market, with shipments up by 25 per cent during the third quarter. Strong desktop PC sales boosted shipments in the Americas by 15 per cent, while the company saw 24 per cent growth in Europe, the Middle East and Africa. Strong demand in India helped boost shipments in Asia-Pacific, excluding China, by 20 per cent, it said.

Looking ahead, Lenovo noted that the economic outlook is uncertain, but said continued strong demand for PCs in Asia and emerging markets elsewhere means PC shipments will continue to see double-digit growth. The company is counting on the expansion of consumer PC and server sales into markets outside China to give it a boost in the months ahead.

Lenovo also announced plans to sell its mobile-phone business, which saw phone shipments decrease by 31 per cent during the fiscal third quarter. A group of private-equity investors will buy the business in a deal valued at $100 million, Lenovo said in a separate [filing] with the Hong Kong stock exchange.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sumner Lemon

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?